OECD HomeKyrgyzstanKey principles, tools and approaches to improve mid-term budget planning for water supply and sanitation in EECCA

Kyrgyzstan

Key principles, tools and approaches to improve mid-term budget planning for water supply and sanitation in EECCA

The implementation of a feasible Finance Strategy (FS)/Strategic Financial Plan (SFP) is even a bigger challenge than just developing it, as it requires a number of measures to integrate the FS/SFP into the policy framework, foremost into the country development strategy (equivalent of the Poverty Reduction Strategy Paper, PRSP), regional and WSS sector development strategies (if exist) and the budget process, i.e. the Medium-Term Expenditure Framework (MTEF) and annual budgets. Recent work in Moldova and the Kyrgyz Republic proved that addressing this general challenge requires different tools and actions and different levels of effort, depending on country-specific situation. While the lack of capacity and methodological guidance is often preventing the establishment of an effective link with the MTEF in the Ministry of Finance (MoF), which appears as a major obstacle to ensure sufficient levels of budget allocations for the sector.

To address this challenge, a Reference book was developed with financial support from the Netherlands presenting key guiding principles, as well as tools and approaches designed to guide stakeholders in the EECCA region on improving the Medium-Term Budget Planning for the Water Supply and Sanitation Sector in their respective countries. The implementation of the principles, tools and approaches is illustrated by country case-studies.